GBP/USD managed a small recovery on the first day of this week, forming a long-legged Doji at the bottom. Today, the GBPUSD pair is range bound with intraday support levels at 1.0642 and 1.0554. The near-term resistance areas are at 1.0827 and 1.0924. Currently, most of the technical indicators indicate an oversold outlook for the GBPUSD pair.
GBP/USD Technical Outlook
Bollinger bands and the Relative Strength Index (RSI) are currently oversold, while the Stochastic is neutral. The Average True Range (ATR) indicates low volatility. The current price of the GBPUSD pair keeps below the 20, 50, and 100 period moving averages.
|
Stochastic |
Bollinger Bands |
ATR |
MACD |
RSI |
|
Neutral (32) |
Over Sold (1.0679) |
0.0169 (Volatility down) |
Below Zero (-0.0259) |
17 (Over Sold) |
Technical indicators are a vital part of the analysis. These indicators help traders find the potential entry and exit levels and inform them about the overall direction of a financial asset.
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GBP/USD Support and Resistance Levels – Daily
|
S 1 |
S 2 |
S 3 |
R 1 |
R 2 |
R 3 |
|
1.0642 |
1.0554 |
1.0457 |
1.0827 |
1.0924 |
1.1012 |
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Pivot Points
|
1 hour |
4 hours |
Daily |
Weekly |
Monthly |
|
1.0686 |
1.0660 |
1.0739 |
1.1048 |
1.1838 |
GBPUSD Trading Ranges
GBPUSD Daily Trading Range: 1.0631 – 1.0738
Weekly GBPUSD Trading Range: 1.0352 – 1.0930
GBPUSD Monthly Trading Range: 1.0352 – 1.1738
GBPUSD Yearly Trading Range: 1.0352 – 1.3749
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GBP/USD Trading Idea – 28-SEP-2022
With the formation of a long-legged Doji at the bottom around the start of this week and a narrow ongoing range, the GBPUSD pair seems to make a recovery move, making the pair ideal for buying entries using the following levels.
Signal Direction: Buy
Signal Timeframe: Daily
Entry: 1.0558
Stop-loss: 1.0389
Take Profit: 1.0727
GBP/USD Upcoming Levels to Monitor
The 140.00 is a strong resistance level; only an intraday closing above this level will ensure further bullish momentum toward the next resistance area. On the downside, an intraday closing below 139.00 will be ideal for the bears to take control further and drag the price lower toward the 138.39 support level.
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